Don't talk, just pay for long distance

Published 4:00 am, Thursday, July 8, 1999

You might as well make that long distance call to your mother this month because even if you don't, you'll be charged for it anyway.

According to a report released Wednesday by the San Francisco-based advocacy group Consumer Action, all of the standard calling plans of the long distance market leaders - AT&T, MCI-Worldcom and Sprint - now have monthly minimum spending requirements or monthly fees on top of their per-minute costs.

Linda Sherry, author of the report, said the changes from the previous year were drastic.

"This is a much-changed long distance landscape," said Sherry. "The majority of the calling plans surveyed last year had no recurring monthly fees or other added costs. This year, the number of plans with monthly fees or minimum costs has almost doubled."

The survey of 34 calling plans offered by the nation's top 15 long distance providers found that 17 of those plans currently charged monthly fees, and four had a minimum monthly spending requirement. All four of those plans are administered by AT&T, MCI or Sprint.

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In contrast, the 1998 survey of 32 calling plans offered by 14 top carriers showed only two with monthly minimum spending requirements and nine with monthly fees.

The $3 monthly minimum means that AT&T, MCI and Sprint charge you $3 whether or not you make a long distance call.

Claire Hasset, a spokeswoman for MCI, said the minimum monthly spending charges were justified. "We had to move to this," she said. "We still incur charges for preparing the bill, serving their account and sending the bill out."

Hasset said MCI chose to refer to the $3 fee as a "long distance expense." According to Hasset, it is not an expense but an added fee. The company tries to make it "as painless as possible," she said.

AT&T and Sprint spokesmen were not available for comment late Wednesday afternoon.

In the report, Consumer Action said that minimum monthly charges were most harmful to low-income phone users who didn't make long distance calls and couldn't afford the additional expense.

"It's going to hurt the people who can least afford it," said Sherry.

Not so, according to MCI's Hasset. "Low-income customers who qualify . . . are exempt from the spending minimum," said Hasset.

The survey did find that a few smaller carriers had deals that were free of monthly costs or minimum payment requirements with low per-minute costs. They include ATCALL, IDT and Matrix Telecom.

According to Sherry, customers need to take the time to shop around for less expensive options. "Callers have to know what they are doing, or they will fall into some very expensive traps," she said.

Fee-based plans, which charge a flat rate and then reduce the cost per minute, are useful only to those who make a large number of long distance calls, said Sherry.

"What we found was that the plans with the monthly fees are really not worth it unless you are so dedicated to your telephone that you talk on it all the time," she said.&lt;